A renewed round of tariffs against China by president Trump dented bullish sentiment, but nothing appears able to stop the S&P which is just 14 points from making a new all time high, a goal it will likely achieve today.
"If the Fed continues at its current pace, it will have tightened by ~3% (or even ~4% if one includes its roll-off of quantitative easing measures) by the end of 2019. Tightening of that magnitude has almost always resulted in recession." - Dan Loeb
While payrolls will come and go, the big story remains the accelerating rout in Emerging Markets, where a bevy of currencies, including the TRY, ZAR, INR, IDR and especially the Argentina Peso, have gotten crushed prompting questions if another 1997-style EM crisis is on the horizon.
The post-FOMC confusion spilled over into international markets, with both Asian and European shares retreating, alongside US equity futures, as traders are on edge ahead of the US-China trade talks taking place today and tomorrow.
"I saw this as the very first ripples in something that would grow to be one of the great dynamics of the 21st century, that we would see more of this emergence [of] online warfare essentially against institutions including nation-states,"
Global stocks have sprinted out of the gate in what right now is a sea of green, and S&P futures are currently at session highs, up 12 points or 0.4% as the dollar resumbles its plunge, sliding for a 3rd day as 10Y yield remain firmly below 2.90%.
Imminent government shutdown? 10Y yields beyond Gundlach's "redline" and threatening an imminent price avalanche? None of this is enough to make even a dent on futures which spiked overnight, and are set for new all time highs.
U.S. futures are back in the green, while Asian and European stocks were mixed after worries about a U.S.-led trade war put world stocks at risk of their first two day loss of the year on Thursday, while bond markets bounced as China poured cold water on reports that it might stop buying U.S. debt.